Series A offer
Got an offer from a Series A and don’t know how to interpret it. Lot of ex AWS people in the startup and founder seemed very nice. Founder said I can’t negotiate even though I have multiple offers. Is this offer a lowball? Offer: Base: 185k Sign on: 10k Options: .1% over 4 years Current TC: 280k
Read that as got a offer from Serie A. Was gonna ask which club
0.1 is too low. 0.4-0.5 seems more reasonable for a series A startup. What's the company's series A valuation?
0.1 is too low for series A
You are giving up 320k in exchange for 0.1% in 4 years, which roughly means you valued the company as 320m. Does it really worth it? What's their current valuation i.e. how much does VC think? If it is much less than 320m, why you just work for Amazon then use your cash to invest in VC? Note: VC gets preferred share which is less risky than common share plus you need to pay strike price to buy your common share.
If the start up becomes 1 billion dollar in valuation, your stocks will be worth 1 million. If you consider dilution it would be around 500 to 600k over 4 years. You do the math if the startup is going to become a unicorn in next 4 years. Anything less is a loss for you. If it becomes multi-billion company you hit the jackpot.
Should I get more equity? However I see most startups here giving .1% standard
Depends on your experience level.